A few weeks ago, I wrote about the pitfalls elderly Americans face when bequeathing their property to their children (or grandchildren). One option I didn’t discuss was what the law calls “remainder interests,” which are a class of “future interests.” Both of these terms relate to mechanisms of transferring (almost always) real estate. A remainder …
Usually debtors will ask whether retirement accounts are protected in New York bankruptcy, but they might also want to know if contributions to those accounts are protected. As far as the accounts are concerned, the answer is yes. As discussed here, the federal bankruptcy exemptions allow debtors to shield more than $1.2 million in retirement …
Are Retirement Contributions Allowed in Bankruptcy? Read More »
One of the rare benefits of filing a chapter 13 New York bankruptcy is the ability to reduce (“cram down”) the balance of an underwater mortgage on an investment property to its current market value. More commonly, debtors in chapter 13 cram down their cars, as discussed here. Cram-downs are not available for debtors’ principal …
All Parties Must Join to Cram Down Mortgages on Investment Properties Read More »
It’s one thing to consider filing New York bankruptcy when you run into financial problems, but it’s another thing entirely when a co-signer of a debt files bankruptcy. The co-signer who is doing fine might suddenly find himself or herself in serious trouble. Here are some things for co-signers to consider should a co-debtor file …
Options for Debtors Whose Co-Signers File Bankruptcy Read More »
A skeletal bankruptcy is also known as a bare-bones bankruptcy or less colorfully as an emergency bankruptcy. The idea is that the petitioner submits the minimal documentation necessary to initiate a bankruptcy case with the intent to complete the filing or amend the schedules and exhibits later. There are times when a skeletal bankruptcy is …
In New York it’s common practice for people leasing property to require lessees to pay them security deposits before allowing them access to the property. Most commonly this occurs with rental apartments, but sometimes it can happen with storage space, rented vehicles, etc. For rented properties that the tenant-debtor has little intention of turning over …
What Happens to a (Refundable) Security Deposit in Bankruptcy? Read More »
Sometimes employers ask workers to sign “non-compete” agreements to protect the employer’s interests, usually trade secrets or client information that is crucial to its business. The agreement limits the employee’s ability to work in the same occupational field for another employer (including self-employment) for a certain time period in a certain location in exchange for …
There are times when filing New York bankruptcy isn’t a good idea, like when debtors only owe a couple thousand dollars, but it’s a much more difficult proposition advising debtors who can’t file. The Bankruptcy Code doesn’t offer relief for everyone in all circumstances, so it can help to discuss alternatives. But first, here are …
There are myths of people engaging in serial bankruptcies and sometimes people file consecutive bankruptcies, but one thing debtors should not do is file concurrent bankruptcies. The overlapping cases can create needless headaches for everyone involved, especially debtors. The biggest reason not to do this is that it might end up creating a second bankruptcy …
Concurrent Bankruptcies Are a Disaster Waiting to Happen Read More »
Recall that debtors can use irregular incomes to their advantage to avoid taking the chapter 7 means test. (In New York bankruptcy, the median family income is $49,632 for a family of one and goes up from there for each additional family member.) The linked post gives as an example an individual who was about …
Tweaking Self-Employment Income to Beat the Means Test Can Be Risky Read More »
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